Bitcoin is continuing to earn its stripes as a significant geopolitical asset for some of the worlds most maligned countries as countries are increasingly exploring the concept of Bitcoin bonds.
The governments of three different countries have formally acknowledged their interest in issuing sovereign Bitcoin bond to raise capital.
Afghanistan, Tunisia, and Uzbekistan are currently considering the possibility of launching Bitcoin bonds.
All three nations have expressed keen interest in using such an instrument as a tool to help out the critical sectors of their economies.
The exact details of these bonds are yet to be released.
A bond in general is substantially similar to an IOU between a lender and a borrower, which consists of the details of the loan and payment obligations. It would allow the issuer of the bonds (ie, Afghanistan, Tunisia, and Uzbekistan) to raise funds for a new project or to fund existing ongoing projects.
Afghanistan is planning to also plan to issue Lithium bonds. The governor of the Central bank of Afghanistan has come out and stated:
Afghanistan is keen on issuing a sovereign crypto bond that uses blockchain technology, as an instrument to raise $5.8 billion, needed in the private sector investment for the country’s critical mining, energy and agricultural sectors.
That is a massive amount of Bitcoin, and Bitcoin could also be a couple up with Afghanistan’s Lithium industry- a high demand, but rare mineral. Afghanistan is set to become one of the world’s largest miners of Lithium. Its reserves are estimated to be at $3 trillion worth of Lithium.
However, due to financial restrictions, it’s very challenging for Afghanistan to raise funds internationally needed to develop that industry.
Tunisia’s Central Bank governor has already stated that a dedicated working group was already studying the feasibility of launching Bitcoin bonds.
Uzbekistan is exploring issuing a Bitcoin bond which could end up being tied to cotton futures. Uzbekistan is the world’s fifth-biggest cotton producer.
A crypto issuance could open up new ways for these countries to access international markets- which they have had massive difficulties in exploring for a lengthy time.
This article was originally published on Blockspectator.